This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive
compensation for actions taken through them.
Roku Inc. (NASDAQ: ROKU) released third quarter financial results after markets closed Wednesday. The company said that it had a net loss of $0.09 per share and $173.38 million in revenue, compared with consensus estimates that called for a net loss of $0.12 per share and $169.08 million in revenue. The same period from last year had a net loss of $8.79 per share and $124.78 million in revenue.
Active accounts increased 43% year over year to a total of 23.8 million. Streaming hours were up 63% to 6.2 billion.
Average revenue per user (ARPU) increased 37% year over year to $17.34, on a trailing 12-month basis.
In terms of its segment revenue, the company reported that it had $100.1 million in platform revenue, a 74% increase, and $73.3 million in player revenue, only a 9% increase from last year.
Looking ahead to the full year, the company is raising its guidance. Roku now expects to see full-year revenue growth of 42% year-over-year and gross profit growth to 63%. Consensus estimates are calling for a net loss of $0.11 per share and $722.85 million in revenue for the full year.
Anthony Wood, Founder and CEO, commented in the letter:
We are just starting to witness the massive transition of TV viewing and TV advertising to streaming. Roku is leading the way on the technology front with an operating system that is purpose-built for TV – versus more heavyweight mobile operating systems – and innovative services like The Roku Channel. According to company reports, the largest US cable and satellite TV services together have lost about 2 million linear TV subscribers so far this year – and about 4 million since the end of 2016. The early data suggests that Q3 could be the industry’s highest quarter yet for subscriber losses, while at the same time, user growth on our platform remains strong. The way TV content and advertising are delivered is evolving rapidly and we believe our purpose-built scalable solution is well positioned to be a catalyst for the transition that is underway.
Shares of Roku closed at $58.86, with a consensus analyst price target of $68.08 and a 52-week range of $18.56 to $77.57. Following the announcement, the stock was down 11% at $52.42 in the after-hours session.
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.